To quote another generation, "Duuuude!" Yes, this is the craziest market that I have seen in forty years. Admittedly the tech bubble was crazy. The best commentary that I have seen was by Mark Cuban on CNBC recently in discussing the Gamestop situation. I once thought that he was just lucky, but I was wrong. You might be able to find it on YouTube or in the CNBC archives.
For entertainment and as an example of trying to deal with a crazy market, let me reiterate my investing history in 1987. The speculation and amateurish investing was rampant by late January. Portfolio insurance was supposed to protect investors from losses. The contrarians, myself included, went to cash. For nine long, long months, the market continued upward. Speculation continued rampant. Then October 19, the crash occurred, ultimately down 20% in one day. Lots of people lost money. I beat the one-year performance of most professional managers just by being in money markets. The market started to recover by mid-1988 and 1987 was moot. In the end, I scored a moral victory and a small financial victory over buy and hold but that was short-lived. Methods like buy and hold or constant asset allocation were as good and much easier (and therefore better), if one could absorb the psychic pain of a 20% drop in one day.
I do best when I put the money into stocks and do nothing.for long periods of time. Trading for me has been like quicksand, the more you struggle, the worse off you are. Just saying. If you are good at it, like Sarah, our TSP Strategy moderator, then trading is a viable option. I am not good at it.
If one is retiring and needs the money post retirement, then strategies or approaches other than "buy-and-hold 100% in stocks" are probably better.
Once again, just my opinions and not recommendations.
Good luck,
Tex
Groups.io Links:
For entertainment and as an example of trying to deal with a crazy market, let me reiterate my investing history in 1987. The speculation and amateurish investing was rampant by late January. Portfolio insurance was supposed to protect investors from losses. The contrarians, myself included, went to cash. For nine long, long months, the market continued upward. Speculation continued rampant. Then October 19, the crash occurred, ultimately down 20% in one day. Lots of people lost money. I beat the one-year performance of most professional managers just by being in money markets. The market started to recover by mid-1988 and 1987 was moot. In the end, I scored a moral victory and a small financial victory over buy and hold but that was short-lived. Methods like buy and hold or constant asset allocation were as good and much easier (and therefore better), if one could absorb the psychic pain of a 20% drop in one day.
I do best when I put the money into stocks and do nothing.for long periods of time. Trading for me has been like quicksand, the more you struggle, the worse off you are. Just saying. If you are good at it, like Sarah, our TSP Strategy moderator, then trading is a viable option. I am not good at it.
If one is retiring and needs the money post retirement, then strategies or approaches other than "buy-and-hold 100% in stocks" are probably better.
Once again, just my opinions and not recommendations.
Good luck,
Tex
_._,_._,_
Groups.io Links:
You receive all messages sent to this group.
View/Reply Online (#2194) | Reply To Group | Reply To Sender | Mute This Topic | New Topic
Your Subscription | Contact Group Owner | Unsubscribe [prefander.leadersworkshop@blogger.com]
_._,_._,_
Anda baru saja membaca artikel yang berkategori dengan judul Re: [TSPStrategy] Crazy start to the year!. Anda bisa bookmark halaman ini dengan URL https://1stleadershipworkshop.blogspot.com/2021/02/re-tspstrategy-crazy-start-to-year_47.html. Terima kasih!
Ditulis oleh:
Andriansyah -
Belum ada komentar untuk "Re: [TSPStrategy] Crazy start to the year!"
Post a Comment